United States vs. European Automobile Companies

United States vs. European Automobile Companies
United States vs. European Automobile Companies Image link: https://en.wikipedia.org/wiki/Mercury_(automobile)
C O N T E N T S:


  • Higher tariffs in the United States would affect not only the European companies that supply car factories in Europe, but also those that export parts to U.S. factories.(More…)
  • The EU charges a 10 percent tariff on imports of U.S. automobiles, and the United States has a 2.5 percent tariff on European cars.(More…)


  • LA MALBAIE, Quebec, June 9 (Reuters) – The United States and the European Union clashed over trade tariffs at a summit of G7 leaders in Canada on Friday and Saturday, with U.S. President Donald Trump complaining his country has been unfairly treated in trade by the EU for decades.(More…)
  • The European Union says it is already preparing measures to retaliate against the United States if President Donald Trump puts tariffs on imported cars and auto parts.(More…)



Higher tariffs in the United States would affect not only the European companies that supply car factories in Europe, but also those that export parts to U.S. factories. [1] Trade disputes with the United States will continue to give European companies additional reasons to look for new places to sell their cars. [1]

Higher American tariffs would hurt the European automobile sector, because exports to Europe’s main customer would probably decrease. [1] According to the European Automobile Manufacturers’ Association, the sector represents about 7 percent of the EU gross domestic product and employs 12.6 million people, or 5.7 percent of the bloc’s workforce. [1]

The European Automobile Manufacturers? Association, known by its French acronym ACEA, expressed its concern about the tariff issue, and its potential for escalation. [2] The earliest ones were established by American companies, then various European and Japanese manufacturers followed. [3] Foreign vehicles manufacturers have been assemebling vehicles here for the past 30 years as well and now several automobile companies are in discussion to build automobile factories in the country. [3]

Several European automobile companies, like BMW and Mercedes, already manufacture cars in the United States. [4] Malmstr, who suggested that the EU was preparing retaliatory tariffs on American agricultural products, also noted that European companies produce many cars in the U.S., providing jobs there and adding revenue to the American economy. [5] A trade war would almost certainly raise the prices of cars for all consumers, not just European cars, since American companies would have an incentive to raise their own prices if they were competing with companies whose prices were forced higher by tariffs. [6]

Most early automobile companies were small shops, hundreds of which each produced a few handmade cars, and nearly all of which abandoned the business soon after going into it. [7] These problems were eventually resolved, and automobile companies contributed significantly to aircraft production. [7]

Slightly more than six-percent of working people in the European Union are employed in the automotive sector, according to the European Automobile Manufacturers Association. [8] For Europe, there is a lot at stake as companies like BMW, Daimler, Volkswagen, and Fiat Chrysler send $46.6 billion worth of vehicles every year to the U.S. Some 13.3 million people, or 6.1 percent of the employed population of the EU, work in the automotive sector, according to the European Automobile Manufacturers Association. [9] Complicating matters further, a number of top European automobile companies, such as BMW and Mercedes, already make many automobiles in the United States, as do Japanese companies such as Honda, Nissan, Toyota and Subaru. [10] It?s important to note that the European Union charges a 10% tariff on imports of U.S. automobiles, while the United States has a 2.5% percent tariff on European cars. [4] Some European auto makers are open to the EU dropping its tariffs in exchange for the U.S. lowering tariffs on pickups and SUVs. That might be a hard sell with American auto companies and worker unions who have enjoyed the protection for half a century. [11]

President Donald Trump’s campaign of protectionism ramped up in velocity when the U.S. president threatened to place a 20% tariff on European automobiles last month. [12] “I am hoping that when ? it becomes very obvious that even U.S. industry doesn?t want this, that that would give pause for thought and perhaps a reconsideration of the measures,” Jonathan O?Riordan, the international trade director at the European Automobile Manufacturers Association, said. [13]

The EU charges a 10 percent tariff on imports of U.S. automobiles, and the United States has a 2.5 percent tariff on European cars. [10] In conclusion the European automobile industry officials still think EV in Europe is still uncertain. [14]

According to the European Automobile Manufacturers’ Association (ACEA), EU drivers bought more than 15m new cars in 2017, surpassing this number for the first time in a decade. [15] Not surprising, though, since Trump?s administration has threatened the European Union with 20 percent tariffs on automobile imports, causing the stocks of German car companies (including BMW) to plummet. [16]


LA MALBAIE, Quebec, June 9 (Reuters) – The United States and the European Union clashed over trade tariffs at a summit of G7 leaders in Canada on Friday and Saturday, with U.S. President Donald Trump complaining his country has been unfairly treated in trade by the EU for decades. [17] They don’t stand to gain as much as Germany from an agreement that preserves European exports of cars to the United States, and they are worried that the White House will push to include agricultural products ( a sensitive area in many EU member states ) in its trade negotiations with the European Union. [1] The effects of lower car sales to the United States would also be felt outside the European Union, since countries such as Turkey and Tunisia provide parts and services to the German car industry. [1] Lower car sales to the United States would hurt the main European exporters directly and their suppliers indirectly. [1] The United States, meanwhile, imposes a 2.5 percent tariff on imported passenger cars from the European Union, though the tariff is 25 percent for vehicles like pickup trucks. [1] It is the second-largest exporter of cars to the United States after Germany, and the terms of its exit from the European Union will determine the future of its exports to America. [1] Because of the large size of its car-making sector and its exposure to the U.S. market, Germany in particular stands to lose big if the United States imposes new tariffs on European cars. [1] At the company level, the impact of higher U.S. tariffs would also be varied, because some European carmakers assemble their models in the United States. [1] Trade friction between the United States and the European Union has de-escalated since late July, when they agreed to study ways to eliminate non-auto industrial tariffs and reduce non-tariff barriers. [1] Political friction in Europe would deepen should the Trump administration use the threat of higher car tariffs to pressure the European Union to open its agricultural markets to American exports. [1]

Trump threatened to impose a 20 percent import tariff on all European Union-assembled vehicles, a move that could upend the industry’s current business model for selling cars in the United States. [18]

The automobile sector is a crucial part of Europe’s manufacturing system and a large source of employment, and the United States is a major market for its cars. [1] The complexity of Europe's automotive sector means that the impact of higher U.S. tariffs on EU cars would be felt not only in the countries that export the most automobiles to America but also along their supply chains. [1]

While overall sales would decrease, some U.S. demand for European luxury cars probably would remain even if higher tariffs make them more expensive. [1] The U.S. government has threatened to impose higher tariffs on cars imported from the European Union. [1] The bloc’s common external tariff for passenger cars is 10 percent, which is twice the average tariff for the European Union, while multiple non-tariff barriers such as standards and regulations make it hard for foreign carmakers to penetrate the European market. [1]

European Commission President Jean-Claude Juncker said the European Union and the United States have the largest bilateral trade and investment relationship in the world worth roughly 900 billion euros ($1.06 trillion) per year and growing. [17] Should the United States pressure the European Union to include agriculture in their trade negotiations, the move would lead to friction between Germany and France and reduce the chances of reaching an agreement. [1]

The United States had a $22.3 billion automotive vehicle and parts trade deficit with Germany in 2017 and a $7 billion deficit with the United Kingdom, according to U.S. government data. [19] While Germany would be the biggest loser if the United States levied higher tariffs on EU cars, it would not be the only one. [1] The United States imposes a 2.5-percent tariff on cars assembled in Europe and a 25-percent tariff on European-built vans and pickup trucks. [19] While the United States is Germany’s main destination in terms of value, Spanish or French exports to the United States are negligible, because these countries sell most of their cars in Europe and other markets. [1] Lower German exports to the United States would hit companies in Central and Eastern Europe harder than those in Southern Europe. [1]

In January 2017, Trump warned German car companies he would impose a border tax of 35 percent on vehicles imported to the U.S. market. [19] Because German companies also import parts such as suspension systems from Spain, gearboxes from France and brakes from Italy, some companies in those countries would be hurt even though carmakers in those countries do not stand to lose as much as Germany from higher U.S. tariffs. [1] Companies that make cars in America import most of their parts from Mexico, Canada, China and Japan, but they also obtain parts (such as gearboxes, engines and steering wheels) from Europe. [1]

There is no “Buy European” Act in the EU. U.S. companies can compete in EU tenders on an equal footing under EU rules. [17] U.S. companies earn some $106 billion more in corporate profits in the EU than EU companies do in the U.S. When these corporate profits are added to the U.S. trade balance, Washington has no trade deficit with the EU. Some 2.4 million European cars are made in the U.S. every year. [17]

U.S. companies earn more than twice as much exporting goods to the EU as they do exporting to China – 251.5 billion euros ($295.91 billion) compared to 115.4 billion euros ($135.78 billion) in 2017. [17]

The United States is the main destination of European cars, receiving 29 percent of exports in 2017, followed by China (17 percent) and Japan (6 percent). [1] More than 70 percent of all foreign direct investment into the United States comes from the European Union. [17] If the United States and the European Union reach a trade deal, the United Kingdom would be excluded as well. [1] The bilateral commission created by the European Union and the United States to explore a trade deal plans to release its report before 2018 ends. [1] The evolution of the value of the dollar versus the euro could also play a role, because a stronger dollar could mitigate the effect of the tariffs, especially if the United States decides to introduce only a modest hike in tariffs (for example, a 10 percent tariff, which would put the United States at the same level as the European Union, instead of the 25 percent tariff that Trump recently mentioned). [1]

The European Union is pressuring the Common Market of the South (the South American trade bloc better known by its Spanish acronym Mercosur) and Australia to reduce their tariffs on European cars. [1] European Commission President Jean-Claude Juncker responded by suggesting the EU raise tariffs on iconic American products popular in Europe like Harley Davidson motorcycles, Kentucky bourbon and Levi’s jeans. [20] While the agreement defused the immediate danger of higher American tariffs on European cars, it did not eliminate the threat, and business and political leaders in the bloc remain nervous. [1] “I think what the administration is talking about is to balance out this difference in tariffs to make it more of an equal playing ground for American and European carmakers,” he said. [20] Germany’s carmakers responded by pointing out that German and European carmakers are major investors in the U.S. In 2017, German automakers alone were invested in 265 plants across the country and employed approximately 110,000 American workers. [20]

Last year, Germany’s automotive trade association said “the United States would be shooting itself in the foot by imposing tariffs or other trade barriers.” [19] Germany has been particularly supportive of reaching a trade agreement with the United States, while other EU members have been more skeptical. [1] This is an argument Germany will make when debating EU strategy with France and other countries that are skeptical of making concessions to the United States. [1] Once again, Germany is one of Europe’s main providers of such parts to the United States. [1] Trump said the United States would apply duties of 25 percent on imported steel and 10 percent on aluminum to protect domestic producers. [19] The United States accounts for about 15 percent of worldwide Mercedes-Benz and BMW brand sales, while it accounts for 5 percent of VW brand sales and 12 percent of Audi sales. [19] German automakers Volkswagen AG, Daimler AG and BMW AG build vehicles at plants in the United States. [19]

Complex supply chains in Europe mean that higher American tariffs would affect many other countries, particularly in Central and Eastern Europe. [1]

The White House could also decide to impose higher tariffs on European auto parts. [1] In a speech Friday night at Harvard University, European Commissioner for Competition Margrethe Vestager said the EU will respond to the tariffs “to defend European industry, and the world trading system,” according to a copy of her remarks. [19]

Germany wants to preserve its access to the U.S. market, but other countries, such as France, are happy with the current level of protection for the European automotive sector. [1] WASHINGTON (Reuters) – U.S. President Donald Trump kept up pressure on trading partners on Saturday, threatening European automakers with a tax on imports if the European Union retaliates against his plan to slap tariffs on aluminum and steel. [19] Trump threatened via Twitter on Saturday to hit back at any tariff measures from the European Union — floated in response to Trump’s recently announced global steel import tariffs — in kind, targeting European cars. [20]

Dealing with the Trump White House and avoiding an escalation of the trade disputes will be at the heart of the European debate by the end of the year and in early 2019. [1] New tariffs would not affect all European countries equally. [1] The European single market contributes to this situation, because auto parts move within the European Union without paying any tariffs. [1] Complex supply chains for auto parts within the European Union mean the effects of those tariffs would be felt across the Continent. [1]

It recently reached agreements with Japan and South Korea, two major automobile producers, showing that the European Union is becoming more open to including this sensitive sector in its trade talks. [1] Germany also accounts for 55 percent of all EU automobile exports. [1]

In 2017, EU auto exports to America reached $38 billion, against only $6 billion in EU imports of American cars. [1] Trump in 2017 referred to Germany as “bad, very bad” for its millions of cars sold in the U.S., vowing to support greater sales if American car brands manufactured domestically. [20] One of the central issues is the flow of automobiles, and the imbalance of taxes charged by Europe compared with those charged by the U.S. While the leaders of the E.U. nations are struggling to maintain the status quo, German car manufacturers almost unanimously came out advocating do away with all tariffs on their products. [21] Swedish automobile manufacturing is widely known in European and U.S. markets due to advanced and safe cars including Saab and Volvo brands, although their production (150-200 thousand per year) is not among the largest in Europe and the world. [3] Now, pricey European convertibles are among the vehicles that could become rare on American roads if Trump’s proposal to slap tariffs on imported cars takes effect. [18]

Now the Czech Republic is one of the most significant European (5th) and World’s (15th) auto maker, having annual output near 1.4 million and largest export to Western and Eastern Europe, other CIS and European countries and even to United States. [3] The South Korean automobile industry is today the sixth largest in the World in terms of production volume (concedes to China, United States, Japan, Germany and India only) and the sixth largest in terms of export volume, achieved more than 4.6 million vehicles produced in 2011. [3]

Now, annual production of more than 18 million automobiles exceeds that of the United States and Japan combined, or that of the EU. 20 21 Moreover, with total sales of 13.64 million, China became the largest automobile market in the world for the full year 2009, overtaking the United States. [3] The United States was the world’s largest automobile producer by volume from the early years of the 20th century until the 1980s, when it was overtaken by Japan. [3]

June 22 (Reuters) – In the years before he became president of the United States, Donald Trump owned luxury German cars. [18]

“Hopefully President Trump will calm down and they will find a solution with zero tariffs for European and U.S. cars. [2] Mr. Trump?s repeated threats to raise tariffs on imported cars could put $54 billion in annual revenue from European passenger car exports to the U.S. at risk, according to data from the European statistics office. [22] “Based on the Tariffs and Trade Barriers long placed on the U.S. and it (sic) great companies and workers by the European Union, if these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20 Tariff on all of their cars coming into the U.S. Build them here!” Trump wrote in a tweet. [23] She said German auto companies support thousands of jobs in the U.S., and that exports from German auto factories contribute positively to the U.S. trade balance, and German companies have been active in training American workers. [22] Almost every major auto manufacturer, from foreign companies like BMW and Hyundai to American brands like GM and Ford, has submitted comments to the Commerce Department warning about the possible effect of tariffs on U.S. auto workers and consumers. [24]

Seven auto-industry trade groups that represent large automakers like Ford, General Motors, and Toyota, as well as dealers and parts manufacturers, said tariffs on imports of auto goods would be damaging to the U.S. economy and American consumers. [24]

Who makes better cars, Americans or Europeans? It?s been a debate for many years now and it?s not going to end anytime soon. [25] Mexican production increased rapidly in the 1990s, thanks largely to NAFTA, which led to many American, European, and Japanese manufacturers to move the production of many of their USA-market and Canadian-market models to Mexico, putting Mexico at 8th place in the world in terms of units produced. [3] Americans and Europeans look at vehicles from different points of view. [25]

The American Automotive Policy Council says that historical practices like requiring lengthy car inspections of foreign-made vehicles and prohibiting existing car dealers from selling foreign cars have prevented foreign companies from gaining a large market share. [26] That doesn?t change the numbers, and for a long time foreign cars got the nod over the American made vehicles. [25] When it comes time to paying for your vehicle, American made cars have long been the better deal. [25] Vauxhall has been part of American carmaking giant General Motors since 1925, by which time it had switched car production from its original London plant to a new factory in Luton. [3] Germany?s auto association says German auto makers and suppliers export 29.4 billion ($34 billion) worth of goods to the U.S. each year, while Germany imports just 6.5 billion ($7.5 billion) worth of American goods. [22] A tariff of up to 25 percent would destroy the business case for foreign carmakers to export to the United States models such as the $88,200 Mercedes SL roadster or Audi S5 Cabriolet – and deliver a 4.5-billion euro ($5.24 billion) hit for Germany’s premium manufacturers, analysts at Evercore ISI said. [18] Potential tariffs between the EU and Britain after Brexit and yet more tariffs between Europe and the United States will shrink the market further, auto executives fear. [18] With annual output near 6 million now, Germany is absolute leader of auto production in Europe since the 1960s, and in World was the third during the 1970s – middle of the 2000s and fourth now (concedes to China, United States and Japan only). [3]

Volvo CEO Han Samuelsson told USA TODAY in an interview Wednesday that he supports a policy of no tariffs on vehicles between the U.S. and Europe or China. [27]

BERLIN–Germany?s leading auto makers have thrown their support behind the abolition of all import tariffs for cars between the European Union and the U.S. in an effort to find a peaceful solution to the brewing trade war. [22] President Donald Trump threatened “tremendous retribution” against the European Union, including tariffs on cars, unless European Commission President Jean-Claude Juncker offers major trade concessions next week. [24] President Donald Trump meets European Commission President Jean-Claude Juncker Wednesday to talk about auto tariffs and there?s not much hope in Europe that an all-out trade war can be avoided. [2]

Trump”s tweet also comes the same day the EU imposed tariffs on U.S. products, ranging from Kentucky bourbon to Harley-Davidson motorcycles, in retaliation against U.S. tariffs on imports of European steel and aluminum. [23]

Ellinghorst did add that cars being shipped from the U.S. into Europe faced a 10 percent import duty while European cars into the U.S. faced a 2.5 percent import duty. [20] Exports of European cars to China grew by around 10 percent and exports to Japan grew by 11 percent from 2016 to 2017. [1]

Tariffs are not the only issue the European Union will have to negotiate with its partners, because non-tariff barriers (such as different production standards) will also be an obstacle. [1] The next day, European Commission President Jean-Claude Juncker told German television that “We will put tariffs on Harley-Davidson (motorcycles), on bourbon and on blue jeans – Levis.” [19] European carmakers have been mostly quiet following Trump’s tweet Saturday, with German manufacturer Daimler issuing no comment when contacted by CNBC and Volvo saying it was too early to comment. [20]

Some of the Malaysian companies produce some models in collaboration with Japanese, Chinese- BYD, South Korean or European manufacturers, while also developing fully indigenous Malaysian made cars. [3] After the Great Depression and World War II, these companies continued to prosper and the U.S. produced near 3/4 of all automobiles in the world at 1950. 20 21 However, after record of production near 15 millions in some 1970s years, at the beginning and middle of that decade, a combination of high oil prices, increased competition from foreign auto manufacturers, and increasing government regulation severely affected the companies. [3] It has Soviet origins, evident in the subsequent practice of cloning foreign specimens, though in one recent automobile joint-venture, North Korea developed a wide-range automotive industry with production of all types of vehicles (an urban and off-road mini, luxury, SUV cars, a small, midi, heavy and super-heavy cargo, haulage, construction and off-road trucks, a mini buses, a usual and articulated buses, trolleybuses and trams). [3] The other car manufacturers, such as the Bahman Group, Kerman Motors, Kish Khodro, Raniran, Traktorsazi, Shahab Khodro, and others together produced only 6%. 28 These automakers produce a wide range of automobiles including motorbikes, passenger cars such as Saipa’s Tiba, vans, mini trucks, medium-sized trucks, heavy duty trucks, minibuses, large size buses and other heavy automobiles used in commercial and private activities in the country. [3]

A new factory having an auto assembly capability of nearly 400,000 vehicles annually was opened by Renault in February 2012 in Tangier. 16 It will mainly produce cars for the European market. [3] European vehicles are still better in quality for the more expensive cars, but we are closing the gap. [25] Here you can get more inexpensive cars – even fully loaded – in comparison to most European vehicles. [25] Yugoslavia was 2nd (after Poland) European socialist auto maker outside Soviet Union and achieved at high point near 300 thousands annual production, 250 thousands amongst that was Zastava cars. [3] Since that time, due to East-European and Asian competitors on European market, auto exports from Spain have slowed and annual production decreased to 2.4 million, although Spain beat France and became the second auto power in Europe (after Germany) but 9th in the world. [3] Due to strong competition from Spain and European imports from Asian, Eastern European, Turkish and other producers, last years output decreased to 2.2-2.3 million and third place in Europe (after Germany and Spain) and tenth in the world. [3] With output of more than 2 million, Russia was the world’s 11th and European 2nd (after Germany) automotive largest producer in 2012, and accounts for about 7% of the worldwide production. [3]

One catch is that the Europeans also want a 25% U.S. tax on imports of light trucks–pickup trucks, sport-utility vehicles, and big vans–scrapped. [22] That would mean scrapping the EU?s 10% tax on auto imports from the U.S. and other countries and the 2.5% duty on auto imports in the U.S. As a prerequisite, the Europeans want President Donald Trump?s threat of imposing a 25% border tax on European auto imports off the table. [22] Bulgaria’s production strongly depended on auto imports from the Soviet block earlier and currently depends on other European and Asian countries. [3]

You could say the problem with European auto tariffs is the same. [2] There is reportedly an offer on the table from the Europeans for both sides to accept zero tariffs, but that hasn?t stopped pessimism that a trade war is on the cards. [2]

During a Cabinet meeting, Trump insisted that European Commission President Jean-Claude Juncker needed to make a major trade offer to lower barriers on automobiles during his trip to the U.S. Otherwise, Trump said, the U.S. will be forced to hit the EU with trade restrictions. [24] In Japan, everything is about hospitality,” Peter Kronschnabl, the CEO of BMW Group Japan and the chairperson of the European Business Council?s Automotive Committee and the Japan Automobile Importers Association, told me. [26]

About 89.4 percent of Swedish brand Volvo’s U.S. sales came from European plants in 2017. [27] The U.S. has for years complained about the unfair regime – a 2% tax if you sell European products in the U.S. – 10% if you sell U.S. products in Europe – and got nowhere. [2]

There are no import tariffs on cars, for example, while the U.S. and European Union impose 2.5 percent and 10 percent tariffs. [26] The number of imports of U.S. vehicles in Japan shrank 15 percent between 2013 and 2016, to 19,933, while imports from the European Union grew five percent in that time period, to 251,115, according to Urata. [26] Following Ireland’s entry to the European Union in 1973, the need for locally produced cars to avoid import taxes reduced, and since the 1980s, production ended and all cars are now imported. [3]

A European Commission spokesman didn?t comment directly on the German car makers? offer, but underlined it has a united stance against the aluminum and steel tariffs. [22] An increase in tariffs on European cars would be “terrible” for German manufacturers in particular, Evercore ISI auto analyst Arndt Ellinghorst wrote Friday. [27] Three years later, the company acquired Chrysler’s European division, the former Rootes and Simca auto manufacturers. [3] For a good many years, American cars have been considered far inferior to European and Japanese made vehicles. [25] While American cars have better quality for low to mid-range priced vehicles, the Europeans get the nod when it comes to the higher priced machines. [25]

You may not be able to tell from standing next to a vehicle, but there are some pretty large differences between American and European cars. [25]

Renault also had a controlling interest in American Motors Corporation during the 1970s and 1980s. 61 The other major vehicle manufacturer in France is Renault Trucks, which is primarily owned by Volvo AB. [3] Over the last several years, a lot of American buyers have turned to muscle cars once again. [25] Fixing up your American made car is usually quicker, much easier to do, and a lot less expensive than if you own a foreign car. [25] When American companies partner with Chinese firms on the mainland of China, the hurdles are much higher, and regulations more stringent than when China decides to invest within U.S. borders. [21]

The Largest automotive companies in India are Maruti Suzuki, Hyundai Motor India, Mahindra & Mahindra and Tata Motors (In 2008, it launched Tata Nano, the cheapest car in the world at $1,500). 25 Foreign auto companies with plants in India include, General Motors, Ford, Hyundai, Honda, Suzuki, Nissan Motors, Toyota, Volkswagen, Audi, Skoda, BMW, Renault, Mitsubishi, Jaguar Land Rover, Fiat and Mercedes Benz. [3] After dissollution of the federation, new car assembly plants were built by foreign companies in Slovakia as in other countries in central Europe. [3] Foreign companies have begun to sell more cars in Japan, with few complaints about Japan?s trade policies. [26] Besides DAF Trucks and VDL buses, present Dutch auto production consists primarily of contract manufacturing for BMW and Mini by VDL Nedcar (formerly producing DAF, Volvo, smart and Mitsubishi 66 ), plus a few small sports car companies: Spyker Cars and Donkervoort. [3] In America our roads are wider and not as twisty, so car companies can offer wider, more spacious vehicles. [25] The European companies put a considerable amount of time into making sure their higher end vehicles are some of the best in the world. [25] The largest companies are light vehicle producers AvtoVAZ and GAZ, while KAMAZ is the leading heavy vehicle producer. 11 foreign carmakers have production operations or are constructing plants in Russia. [3] The result has been the loss of all Spanish car brands manufacturers, which are now in hands of foreign companies. [3] Magna Steyr is now a contract manufacture that has built a number of cars for foreign companies, most recently for Aston Martin and Mini. [3] The Irish industry in Ireland has a varied history and despite the small size of the island, a punitive tax on imported cars encouraged a wide range of companies to assemble their cars locally including Fiat, Ford and Renault. [3] Most large global automakers have a presence in Brazil, including BYD, Fiat, Volkswagen Group, Ford, General Motors, Nissan Motors, Toyota, MAN SE, Mitsubishi, Mercedes-Benz, Renault, Honda, Hyundai etc. Brazil also has a number of emerging national companies such as Troller, Marcopolo S.A., Agrale, Randon S.A., Excalibur etc., some of which have produced replicas of classic cars upgraded with modern technology. [3] Some global companies are present in Argentina such as BYD, Fiat, Volkswagen Group, Ford, Iveco, General Motors, Nissan Motors, Toyota, Scania, Mercedes-Benz, Renault, Honda, PSA (Peugeot-Citroen), etc., and also some national companies such as Materfer, 84 TAT S.A., 85 Helvica, 86 Crespi, PurSang, 87 etc. The last have produced replicas of classic cars equipped with modern technology. [3]

Over the past few weeks, Mr. Grenell has held closed-door meetings with the chiefs of all major German automotive companies, including bilateral meetings with the CEOs of Daimler AG, BMW AG and Volkswagen AG, which operate plants in the U.S. Overall, Germany?s auto makers and suppliers provide 116,500 jobs in the U.S., according to the Association of German Automotive Manufacturers. [22] Richard Grenell, the U.S. ambassador to Germany, has been holding meetings with the chiefs of the country?s major automotive companies. [22] In the 1980s-1990s U.S. auto power was overtaken by rapidly growing Japanese auto industry but in the 21st century both of them are balanced and now are the second largest in the World (after China) with annual production of 8-10 millions. 20 In the ensuing years, the companies periodically bounced back, but by 2008 the industry was in turmoil. [3] Despite their complaints about trade barriers, U.S. companies haven?t made the same efforts. [26] U.S. companies set up shop in Japan in the first half of the 20th century, allowing Japanese carmakers to learn their technology. [26]

Currently most companies have downsized or have paralyzed operations due to the difficulty in obtaining foreign currency to import necessary auto parts. [3] Sure, lots of companies make lower end vehicles to sell, but in Europe they would break them off into another brand so the original brand could keep its high quality image with its consumers. [25] The industry began with hundreds of manufacturers, but by the end of the 1920s it became dominated by three large companies – General Motors, Ford and Chrysler. [3] Currently some of the major world automakers have set up assembly plants or are in joint ventures with local companies, including Toyota, General Motors, Honda, Suzuki, and Nissan Motors. [3]

Auto manufacturers in the Slovakia currently include 3 OEM automobile production plants: Volkswagen’s in Bratislava, PSA Peugeot Citro”n’s in Trnava and Kia Motors ‘ ?ilina Plant. [3] After the Second World War this factory was renamed Zastava Automobiles and the production of motor vehicles started again under license to FIAT. [3] In 2009, 13.83 million motor vehicles were manufactured in China, surpassing Japan as the world’s largest automobile producer. [3] The Argentinian industry is regulated by the Asociaci De Fabricantes de Automotores (Adefa), 83 created in 1960, which includes makers of automobiles, light vehicles, trucks and buses. [3] The Brazilian industry is regulated by the Associao Nacional dos Fabricantes de Ve’culos Automotores (Anfavea), created in 1956, which includes makers of automobiles, light vehicles, trucks and buses, and agriculture machines with factories in Brazil. [3]

This is also the line being touted by American carmakers, which accuse Japan of protectionist policies in its automobile market. [26] The American automobile industry began in the 1890s and rapidly evolved into the largest automotive producer in the World through the use of mass-production. [3]

High consumer prices and production inefficiencies characterized the Canadian auto industry prior to the signing of the 1965 Automotive Products Trade Agreement with the United States. [3] While many are concerned that President Trump?s approach is heavy-handed and could have severe consequences for the U.S. and world economies, the trade issue is not necessarily partisan as almost all issues are these days in the United States. [21] Even before the current trade dispute, convertible sales were spiraling down in the United States, said Sam Fiorani, vice president at AutoForecast Solutions, a vehicle market forecasting company. [18] Just look around the streets of the United States to understand why German businesses are siding with President Trump over the trade issue. [21] “To avoid this scenario, the E.U. has made it clear that it is willing to put forward a number of options, to be discussed during the visit of the President of the European Commission, Jean-Claude Juncker, to the United States. [2] The President sat before cameras and questioned how Germany could funnel billions into Russia and then ask the United States to pay more than its fair share to protect the country with Europe?s largest economy from the Russians. [21] “The tariffs, if they materialize, would call into question the business case for many niche models we currently sell in the United States,” a senior executive at one carmaker told Reuters on Friday. [18] The dynamic contributes in part to the trade imbalance between the United States and Japan. [26] Fifty years ago, its initial operations were merely the assembling of parts imported from Japan and the United States. [3] For many years, politicians in the United States, from both political parties, have complained about the imbalance in trade created by America?s open and China?s closed markets. [21] The dark clouds of trade that continue to gather on the horizon will give way to a new dawn of agreements which are in the best interest of all countries, including the United States. [21] Convertible sales already are dwindling in the United States, according to figures compiled by LMC Automotive. [18] German automakers BMW AG, Daimler AG and Volkswagen AG operate assembly plants in the southeastern United States. [18]

“It is important to stay focused on American jobs, and the German auto industry employs tens of thousands of U.S. workers,” Mr. Grenell said. [22] Trump on Friday signaled that without concessions, he would penalize Europe-made vehicles sold to American customers. [27] Americans are starting to grow tired of coming in second and even third to other countries in terms of vehicle manufacturing, so a lot of progress has been made in the quality department. [25] “These higher costs will inevitably lead to declining sales and the loss of American jobs, as well as increasing vehicle service and repair costs that may result in consumers delaying critical vehicle maintenance.” [24] In post-Soviet times, UzDaewooAuto, SamAuto, GM Uzbekistan new auto producing plants were built with South Korean and American help. [3]

After WWII Franco’s Spain lagged behind main European auto manufacturing countries for decades. [3] As a former European Automotive correspondent for Reuters, I?ve a spent a few years writing about the industry. [2] If tariffs are raised, that will being some burden on the European car industry, but the biggest part of the cost will be to the U.S. which is getting more isolated. [2] Trump’s European car tariff threat could crunch German automakers German automakers are suddenly at risk of huge losses as President Donald Trump threatens to impose tariffs in an escalating international dispute over trade policies. [27] European leaders, and particularly German leader Angela Merkel have opposed the protectionist measures from the Trump administration, but some of her constituents agree with the President. [21] His exasperation with Europe over the financing of the North Atlantic Treaty Organization (NATO) started off with his questioning of the whole defence treaty idea, but ended with agreement that European nations, most importantly Germany, would indeed up their contributions to previously agreed levels. [2] At the end of the 20th century, France was the second largest European (slightly lagging behind Germany) and world’s fourth largest auto maker, having an annual production of 3.5-4 million. [3] At the end of the century Belgium became one of the largest European auto makers with an annual output up to 1.2 million from assembly plants of foreign brands. [3]

Russian government presented plans to make Russia as European second automotive producer. [3] Recently fast growing with European and then Japanese and South Korean help, the automotive industry in Turkey plays an important role in the manufacturing sector of the Turkish economy. [3]

The U.S. already taxes imports of European cars at a rate of 2.5 percent. [23] When it comes to the trade issues between the U.S. and other partners around the world, the second most significant dispute is with the European Union. [21] President Donald Trump on Wednesday threatened to ramp up the trade conflict with the European Union unless the group’s leaders agree to significant concessions. [24]

Having some small auto production in socialist Yugoslavia, Slovenia became one of the new East European car making countries and now produces near 200,000 per year, mainly for export. [3] Now that production is more than 200 thousand per year, Uzbekistan exports automobiles to Russia and other CIS countries. [3] Now Romanian automobile manufacturing produces near 350 thousand vehicles per year and includes Dacia, Grivi?a, Igero, Roman and Ford (the former Daewoo and Oltcit manufacturing facility). [3]

German automobile manufacturers have publicly advocated for doing away with all tariffs, which would suit the U.S. President. [21] The automobile manufacturers in Europe are the primary reason why the E.U. leadership will fold to U.S. demands, and the Trump Administration will come to the table with some minor concessions to get a deal in place sooner rather than later. [21]

The Thai-based automobile manufacturer is ThaiRung or well known as TR, manufactured by Thai Rung Union Car Public Co. Ltd. (TRU). [3] Russia has inherited a main part of automotive industry of the Soviet Union with near 1.8 million annual production of all types of automobiles in RSFSR. [3] Ukraine was one of two only Soviet republics having production of all types of automobiles and was second by volume in the automotive industry of the Soviet Union with more than 200,000 annual production. [3]

Japanese brands account for about 90 percent of the domestic auto market in Japan, according to the Japanese Automobile Dealers Association. [26] The project is in partnership with the Chinese Jianghuaa Automobile Corporation JAC Motors and Emin Auto. [3] The Algerian representative of the Japanese giant, in collaboration with Toyota Motor Corporation, account and conduct a study on the Algerian automobile market “to identify patterns that could be assembled locally.” 10 Toyota Algeria also announced the launch of a production unit of brake pads and brake shoes, with a medium-term capacity of 200,000 units to 300,000 units respectively. [3] Production models only appeared after the war; until then, only rich Germans had automobiles. [3]

An employee fixes a hood ornament on a Mercedes-Benz S-Class automobile at the auto maker’s factory in Sindelfingen, Germany. [22] Japanese zaibatsu (business conglomerates) began building their first automobiles in the middle to late 1910s, while designing their own trucks and producing European cars in Japan under license. [3] I visited a new BMW dealership in Tokyo to find out why European carmakers are doing better in Japan than U.S. automakers. [26]

European car manufacturers sent a significant signal to their governments over trade, and their position will likely prevail. [21] European car makers take a lot of pride in the vehicles they turn out for the public to buy. [25] European car makers design their vehicles to be safe as well. [25] Dodge makes a very durable product, but other than that, European car makers make more durable vehicles. [25] The European car makers care a lot about how their brand looks to the public while companies in America really don?t. [25] The automotive industry in Croatia employs about 10,000 people in over 130 companies and generates profit of about US$600 million. [3]

South Africa is traditionally the leader in Africa of the automotive industry and now produces more than half a million annually of all types of automobiles. [3] Many other global automobile giants such as PSA Peugeot Citro”n, Volvo, Kia are setting up their plants and Lexus, Infiniti are also in the process of setting up their manufacturing plants in this country. [3]

The Washington, D.C. -based Alliance of Automobile Manufacturers, which represents automakers on policy issues, said Friday that it opposes increased tariffs. [27] The automobile industry has been an active and growing field in Pakistan for a long time, however not as much established to figure in the prominent list of the top automotive industries, having a stable annual production of between 100,000-170,000 vehicles. [3] Ukraine automobile manufacturers produces 100-200 thousand per year now and includes UkrAvto ( ZAZ, MeMZ ), Bogdan ( Bogdan Motors ), KrAZ, KrASZ, BAZ, ChAZ, Electron, Eurocar, Etalon-Avto, HalAZ, Anto-Rus and LAZ. [3]

A friend of Ohashi?s has a European car and it takes weeks to get parts from the maker, Ohashi said. [26] While Japanese cars are right-hand-drive, requiring manufacturing modifications before American cars can be sold there, this is no different from many other markets where foreign cars are prevalent. [26] European Union Trade Commissioner Cecilia Malmstrom says the 28-nation bloc is preparing to retaliate against the United States if President Donald Trump imposes tariffs on foreign autos and car parts. [8] Credit Tom Brenner/The New York Times The auto industry is a complex target for the president — European automakers have plants in the United States and employ thousands of Americans, and United States automakers do sell large numbers of cars in Europe under brands unfamiliar to Americans. [28] Trump?s new attack on European automakers is mostly a direct threat at Germany, which exported $23 billion in cars to the United States in 2016, according to data aggregated by the Massachusetts Institute of Technology. [6]

So it was that, during the last major tariff negotiation between the United States and the EU, the Uruguay Round in the GATT (1986-1993), American and European negotiators (myself included) spent sleepless nights making sure that their bilateral concessions were strictly equivalent. [29] The European Union said it has tariffs on cars that are about eight-percent higher than those of the United States, but they only apply to about 15 percent of the car market. [8] Malmstrom said at a Brussels news conference hosted by the German Marshall Fund the European Union is compiling “a list of rebalancing measures” If the United States imposes car tariffs. [8]

The three German car companies produce more vehicles in the United States than they export to the United States from Germany, according to industry data. [30] German auto manufacturers sold 1.35 millon vehicles in the United States in 2017, accounting for 7.9 percent of the U.S. market, according to Germany’s VDA automobile industry association. [30] The European Union levies a 10 percent duty on cars made in the United States, and the United States levies a 2.5 percent duty on cars produced in Europe. [28] Would an alignment of the European duty rate on the American one (down to 2.5% from the current 10%) generate a tidal wave of made-in-America cars to Europe? Unlikely. [29] Increasing competition from imported cars and from new manufacturing operations established by European and Japanese firms continued to reduce the share of the American market controlled by the four domestic manufacturers through the remainder of the 20th century. [7] The European industry was moving in the same directions as the American industry, toward a mass market for motor vehicles, but it made slower progress for a variety of reasons: lower living standards with less purchasing power, smaller national markets, and more restrictions in tax and tariff policies. [7] After Mr. Trump announced the penalties on Thursday, European Union leaders warned that American goods like Kentucky bourbon and Harley-Davidson motorcycles, many of them with roots in the home states of key Republican leaders, would be treated “the same way” if the steel and aluminum tariffs were enforced. [28]

“Based on the Tariffs and Trade Barriers long placed on the U.S. and its great companies and workers by the European Union, if these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the U.S.,” Trump tweeted. [30]

The Auto Alliance, a trade group of automobile manufacturers that represents 70 percent of U.S. car and light truck sales, said, “Tariffs are not the right approach.” [30] The French automaker of Peugeot and Citroen cars, PSA, and Renault don’t ship any cars for sale in the U.S. Italy’s Fiat Chrysler has auto parts and assembly plants in the United States and Mexico. [30] Many of the Japanese-owned American plants were built in response to limitations imposed on exports of cars to the United States by Japan?s Ministry of International Trade and Industry. [7] Although the automobile originated in Europe in the late 19th century, the United States completely dominated the world industry for the first half of the 20th century through the invention of mass production techniques. [7] The period from 1919 to 1939 also brought significant growth in automobile manufacturing in Europe, though on a considerably smaller scale than in the United States. [7]

In the United States there was a legal battle between Ford and the Association of Licensed Automobile Manufacturers over the Selden patent, which the association claimed as a basic patent on the gasoline-powered car. [7]

It was possible to begin building motor vehicles with a minimal investment of capital by buying parts on credit and selling the finished cars for cash; the cash sale from manufacturer to dealer has been integral in the marketing of motor vehicles in the United States ever since. [7] Those manufacturers produce hundreds of thousands of cars in the United States each year, many of which are later exported to buyers in Asia and Europe. [6] Trump has been hammering the German auto industry since before taking office, incensed at their move to expand production in Mexico and threatening them with a 35 percent tariff on any cars brought into the United States. [6] A leading German think tank says Donald Trump is right that tariffs between the United States and Europe are asymmetrical, but urges negotiations to lower import taxes across the board. [31] New tariffs could hurt Europe’s large auto manufacturing and export industry, as well as consumers and manufacturers in the United States, where prices would increase. [8] An EU report on the potential impact of U.S. tariffs on the auto industry says they could prompt U.S. trade partners to retaliate with tariffs on $294 billion worth of American goods, or nearly 20-percent of total U.S. exports. [8] The kind of interchangeability achieved by the “American system” was dramatically demonstrated in 1908 at the British Royal Automobile Club in London: three Cadillac cars were disassembled, the parts were mixed together, 89 parts were removed at random and replaced from dealer?s stock, and the cars were reassembled and driven 800 km (500 miles) without trouble. [7] In the United States the preparation for industrial mobilization was negligible until 1940; in fact, there was no serious effort even to restrict civilian automobile production until after the attack on Pearl Harbor in December 1941. [7] The Stanley brothers in the United States, however, continued to manufacture steam automobiles until the early 1920s. [7]

Another Japanese automaker, Honda Motor Company, followed with a car manufacturing operation adjacent to its motorcycle plant; it later added a second car facility in the United States and a car plant in Canada. [7] One of Trump?s top advisers, Peter Navarro, also holds the view that German automakers have stolen market share in the United States by importing cars but limiting the amount of U.S. cars sold into their country, two people involved in White House deliberations said. [6] Automotive firms provided one-half of the machine guns and carbines made in the United States during the war, 60 percent of the tanks, all the armoured cars, and 85 percent of the military helmets and aerial bombs. [7] Morris in fact turned to the United States for his parts, but these early efforts were cut short by World War I. In the 1920s Morris resumed the production of low-priced cars, along with his British competitor Herbert Austin and AndrGustave Citro”n and Louis Renault in France. [7] The restrictions followed threats of sanctions by the United States in the wake of Chrysler?s near collapse and heavy losses by Ford and GM. Called the Voluntary Restraint Agreement (VRA), it spelled out how many cars each Japanese producer could ship to the United States in a single year. [7] Look at car rankings inside the United States: Japanese and European cars top U.S. models in terms of customer satisfaction. [29] The statistic shows the leading European car brands as of August 2018, based on the number of vehicles sold in the United States. [32] The European Union and the United States are each other’s largest export markets. [30]

Their European subsidiaries, mostly established in Germany, catered to the local market under the protection of the GATT or WTO legal EU tariff, which raised by 10% the cost of imported Japanese cars. [29] Rover then entered into a cooperative venture with Japan?s Honda in which cars of Honda design were built at Rover plants for sale in Britain and other European countries under the Rover and Honda brands. [7]

It would have stayed at the same level for 25 years in the now defunct TPP. Does the call for discussions on the 10% European tariff mean that the Trump administration is ready to put on the table that 25%? This will be greeted with enthusiasm in Detroit. [29] The lower average level of tariffs masks higher duties that hit particular European products, from 9 percent on chocolate to 20 percent on key milk products, and 25 percent on small trucks. [31]

Both Trump and Ross conveniently forget that there are actually two U.S. tariffs on automobiles: 2.5% on light vehicles, but 25% on pickup trucks. [29] Trump’s announcement on automobile tariffs added fuel to anxiety-gripped markets, as the U.S. and China are poised to escalate a trade war. [30]

OICA – (Organisation Internationale des Constructeurs d’Automobiles) – The International Organization of Motor Vehicle Manufacturers comprising 43 national trade associations around the world, including all major automobile manufacturing countries, thereby covering virtually the entire motor vehicle industry all over the world. [33] Cars (or automobiles) make up approximately 74% of the total motor vehicle annual production in the world. [33] Henry M. Leland, founder of the Cadillac Motor Car Company and the man responsible for this feat of showmanship, later enlisted the aid of a noted electrical engineer, Charles F. Kettering, in developing the electric starter, a significant innovation in promoting the acceptability of the gasoline-powered automobile. [7]

Never once did the U.S. side request a reduction of the EU tariff on automobiles. [29] The U.S. president has long attacked Germany’s auto industry, saying that they are flooding the U.S. market with automobiles and contributing to trade imbalances. [30]

The design of modern automotive vehicles is discussed in the articles automobile, truck, bus, and motorcycle ; automotive engines are described in gasoline engine and diesel engine. [7] Fiat, founded in Turin in 1899 by Giovanni Agnelli, soon became one of Europe?s largest producers and exporters of automobiles and also made buses, trucks, airplanes, and military vehicles. [7] The industry?s principal products are passenger automobiles and light trucks, including pickups, vans, and sport utility vehicles. [7]

In less than 10 years the number of automobile manufacturers in the United States dropped from 108 to 44. [7] Europe transports nearly $47 billion worth of vehicles every year to the United States. [8] According to VDA data, 493,643 cars were exported from Germany to the United States. [30] No. In the United States, the main competitor on the car market at the time was Japan. [29] From a negligible position in 1950, Japan in 30 years moved past West Germany, France, Great Britain, and the United States to become the world?s leading automotive producer. [7] They fell into one of three well-defined categories: they were makers of bicycles, such as Opel in Germany and Morris in Great Britain; builders of horse-drawn vehicles, such as Durant and Studebaker in the United States; or, most frequently, machinery manufacturers. [7] The United States regained the lead in vehicle production in 1994, since by that time Japanese manufacturers were building more of their products in factories in their major overseas markets, such as the United States, in response to economic and political pressures in those markets. [7] By the early 1980s the automotive industry in the United States was concentrated in four major firms–GM, Ford, Chrysler, and AMC–and one important manufacturer of commercial vehicles, International Harvester Company. [7] In 1979 Renault of France acquired a 46 percent interest in AMC to increase its small presence in the United States and gain access to AMC?s line of popular Jeep vehicles. [7] It said the United States has higher tariffs on trucks and other products. [8] There?s also the problem that the “massive tariffs and barriers” Trump says exist in Europe for American automakers ignores that the situation is a bit more complicated. [6] In 1954 Nash and Hudson joined to form AMC. The company enjoyed temporary prosperity in the late 1950s when it introduced the first American compact car, the Rambler, in response to growing imports of small foreign cars. [7] It was the latest indication that Mr. Trump, despite pressure from foreign allies and American business leaders, is standing by his decision to impose a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports from all countries. [28]

During the late 1970s and early ?80s, Japan?s principal automakers– Toyota, Nissan, Honda, and T?y? K?gy? (later Mazda )–enjoyed impressive export gains in North American and western European markets. [7] During the 1930s British automotive production continued to increase steadily, in contrast to American production, and so the smaller companies were not forced to compete for a shrinking market. [7] Although American production continued to grow, its share of world automotive production fell from about 80 percent of the total to 20 percent. [7] For all of the belligerents the conversion of automotive facilities was an afterthought, improvised after the beginning of hostilities, and the American industry, involved only for a short time, never fully utilized its capacity. [7] Mr. Trump has continued to pursue the fulfillment of his “America First” campaign promise and his vows to protect struggling American steel makers, writing on Twitter on Friday that ” trade wars are good, and easy to win.” [28] “The United States has an $800 Billion Dollar Yearly Trade Deficit because of our “very stupid? trade deals and policies,” Mr. Trump wrote on Twitter on Saturday. [28] All of Washington agrees that trade and investment between Europe and the United States make the transatlantic market the most integrated economic area in the world. [29] The third member of the “Big Three” automotive manufacturers in the United States was created at this same time. [7] At the end of World War I, Ford was the colossus, dominating the automotive scene with the Model T not only in the United States but also through branch plants throughout the world. [7] A number of other Japanese manufacturers opened plants in the United States as joint-venture operations. [7] German automakers Volkswagen, Daimler and BMW all have assembly plants in the United States to produce for the domestic market as well as for export. [30] Steel and aluminum exports to the United States were worth 3.58 billion in 2017. [30] The new company stopped production in the United States in 1964 and in Canada two years later. [7] Region United States Survey time period August 2018 Supplementary notes Numbers were calculated by sources based on actual monthly sales reported by the manufacturers. [32] The President, in his speeches and tweets, loves to hammer away at the fact that other countries “rape” the United States. [29] Among individual countries the United States was the leading producer until the recession of the early 1980s. [7] In the United States almost all of the producers were assemblers who put together components and parts that were manufactured by separate firms. [7]

By 1929 the Big Three supplied three-fourths of the American market for motor vehicles; most of the remainder was divided among the five largest independents–Hudson, Nash, Packard, Studebaker, and Willys-Overland. [7] In 1904 he assumed control of the ailing Buick Motor Company and made it one of the principal American producers. [7] Leyland and the British Motor Corporation united in 1968 as the British Leyland Motor Corporation (later British Leyland Ltd. and, after 1978, BL Ltd. ); this move, sanctioned by the government, was intended to forestall possible American domination of the British automobile industry. [7] By the beginning of the 20th century, German and French manufacturers had been joined by British, Italian, and American makers. [7] The American automotive industry represented such a concentration of productive capacity and skill that, once its resources had been harnessed to war production, its contribution was tremendous. [7] Only a large firm could make the heavy investment in plant and tooling that the assembly line required, and Ford was already the largest single American producer when it introduced the technique. [7]

In 1980 Japan, which had had little automotive manufacturing before the war, became the leading producer, with the European Economic Community (EEC) ranking second. [7] In the second half of the century the situation altered sharply as western European countries and Japan became major producers and exporters. [7]

FILE – European Commissioner for Trade Cecilia Malmstroem speaks during a media conference at EU headquarters in Brussels, Tuesday, June 26, 2018. [8]

U.S. President Donald Trump on Friday threatened to impose a 20 percent tariff on U.S. imports of vehicles assembled in the European Union, in a move that would hit German automakers hard. [30] The European Union charges a 10 percent tariff on the import of cars. [6]

WASHINGTON — President Trump warned on Saturday that he would apply higher taxes on imported European cars if the European Union carried through on its threat to retaliate against his proposed stiff new tariffs on steel and aluminum. [28] In a tweet today, President Donald Trump threatened to impose tariffs on European cars in an escalation of rhetoric that, in recent days, has made the prospect of an all-out trade war more and more of a possibility. [6] President Donald Trump’s threat to impose tariffs on European cars is based on a misconception about the imbalance in U.S.-EU trade, the EU’s trade chief has said. [5]

A note on U.S. and European car tariffs to a very stable genius. [29] The European Union is the US’ largest export market, accounting for about one-fifth of all U.S. exports. [30] Trump repeatedly berated the European Union during his visit to Europe last week, maintaining the bloc is an unfair trading partner and a “foe.” [8]

Italian automobile manufacturers gained a reputation for highly engineered sports cars and racing cars, but Italy had no mass market and therefore achieved only small-scale production at that time. [7] Except for Rolls-Royce, whose automobile production was only a very small part of the company?s business, British automobile output was then largely controlled by four firms: British Leyland, Ford, Vauxhall, and Rootes, which came under Chrysler control in 1967 but was sold off to France?s Peugeot-Citro”n in 1978. [7] The Rootes Group, based on Hillman and Humber, was a combine formed by a family that had built a large automobile sales concern and then moved from sales to production. [7] The most promising, Kaiser-Frazer Corporation, lasted some 10 years but lacked the financial, technical, and sales resources to compete when the automobile market returned to normal. [7]

The major developments of the 1920s were the merger of Daimler and Benz in 1926, after the founders of those firms had died (their bitter rivalry for the distinction of being the inventor of the gasoline automobile made any such union during their lifetimes unthinkable), and the entry of General Motors onto the German scene through the acquisition of the Adam Opel company in 1929. [7]

A few producers of specialized vehicles remained, along with an assortment of companies that made automotive parts and components. [7] Automotive industry, all those companies and activities involved in the manufacture of motor vehicles, including most components, such as engines and bodies, but excluding tires, batteries, and fuel. [7] These companies as well as Mitsubishi, Isuzu, Fuji, and Suzuki later opened manufacturing plants in major markets outside Japan to ease trade tensions and increase their competitiveness as the value of Japan?s currency soared. [7]

The European Union says it is already preparing measures to retaliate against the United States if President Donald Trump puts tariffs on imported cars and auto parts. [9] The European Union Trade Commissioner Cecilia Malmstrom said Thursday, July 19, 2018, it is preparing measures to retaliate against the United States if U.S. President Donald Trump escalates trade tensions with new auto tariffs. [9]

Brussels Increased U.S. import tariffs on Europe’s automotive industry could cost the United States 13-14 billion dollars in gross domestic product, the European Commission has told Washington in a letter published on Monday. [34]

McKay?s stance echoes the fears of many critics who contend tariffs would drive up the cost of all cars in the United States, which imported a record $192 billion in new passenger vehicles in 2017, according to the Post. [4] The latest threat by Trump — it?s not the first time he?s threatened Europe with auto tariffs — is clearly aimed at pressuring foreign auto makers to build more cars in the United States. [11] When a car is sent to the United States from China, there is a Tariff to be paid of 2 1/2%. [35]

Sounds like a lot, but it?s really just a small percentage of all the vehicles sold in the U.S. Americans bought 17.3 million cars and light trucks last year. [11] EU carmakers in the U.S. produce 2.9 million cars annually (over a quarter of U.S. production), supporting over 540,000 American jobs. [12] Earlier this month, the EU published an analysis of the potential economic impact of U.S. tariffs on the auto industry and estimated that it could lead the EU and other U.S. trade partners to retaliate with tariffs on $294 billion worth of American goods, or about 19 percent of total U.S. exports. [9] What Trump also fails to mention is that the U.S. has a much higher 25% tariff on foreign-made SUVs and light trucks, the sweet spot in the American auto market. [11] When EU officials suggested they might tax American bourbon, jeans and motorcycles in response, Trump thumb-punched back with his tweet about introducing auto import tariffs. [36]

Donald Trump has threatened punitive tariffs against imports of European vehicles such as these Mercedes-Benz cars. [13] Some European observers expect Trump to announce his decision on car tariffs before the midterm elections in November, in a bid to boost the chances of Republican candidates running for Congress and in state elections. [13]

Last year, Daimler, BMW and Volkswagen AG imported 54 percent of the cars they sold from European plants, down from 71 percent in 2010, according to LMC. BMW produces five different SUVs at the plant it opened in 1994 in Spartanburg, South Carolina. [36] GM’s decision to sell its European Opel and Vauxhall brands last year wasn’t based based on trade barriers — most of those cars were being built in England or on the European mainland. [36]

Volvo?s Overseas Delivery program also offers some European colors, options, and accessories not otherwise available in the United States. [37] “The European Union would therefore caution the United States against pursuing a process which could result in yet another disregard of international law, which would damage further the reputation of the United States and which the international community cannot and will not accept.” [13] Donald Trump will put a “tax on the American people” if he goes ahead with a threat to hit European carmakers with punitive tariffs, the European Union has warned. [13]

German carmakers have been expanding production in the U.S. in part because the vehicles they build here are more catered to American tastes. [36] German automakers are already doing most of what Trump wants from them, building more vehicles for American consumers in the U.S. and even exporting from its shores. [36]

Ford Motor Co. ’s head of Europe quibbled with Trump’s claim that the EU has put up trade barriers that are impossible for American automakers to overcome. [36] Auto makers such as BMW BMW, +0.56%, Porsche, Volkswagen VOW3, +2.29% and Daimler DAI, -0.14% unit Mercedes-Benz shipped about 1.2 million cars made in Europe to the United States in 2017, according The Wall Street Journal. [11] Even if Trump were to get his way, Europe wants something in return: Easier access to the highly protected and lucrative market for SUVs and pickup trucks that generate the bulk of profits for American auto makers Ford F, +0.85% and General Motors GM, +1.11%. [11]

While exports to the U.S. reflect no more than 10% of overall sales, European auto makers could sustain billions of dollars in additional expenses if Trump made good on his threat. [11] Don’t expect U.S. carmakers to ask the Trump Administration for help with the European market, Tynan said. [36]

General Motors Co., America’s largest carmaker, largely bailed from Europe last year for reasons that had less to do with protectionism than with billions of dollars in losses from decades of producing vehicles there that not enough Europeans wanted to buy. [36]

The Stoxx 600 Automobiles and Parts Index, the sector benchmark, gained 0.8% in the opening hour of European trading. [35] The EU’s internal analysis “shows that an additional import tariff of 25 per cent, applied to automobiles and automotive parts, would in first instance have a negative impact on U.S. GDP in the order of 13-14 billion USD,” the commission wrote in the document submitted on Friday. [34] Local automobile dealers appear varied in their views of President Donald Trump?s plan to impose a 25% tariff on foreign cars, with some brushing it off as a nonevent and others saying it would put a dent in consumers? wallets. [4] Since fuel consumption of automobiles is a major factor in air pollution, and subsequently importation of motor fuel can be a huge part of a nation’s foreign trade, many countries execute requirements for fuel economy. [38]

EU-owned companies in the U.S. export 60% of their production, helping the country?s trade balance, the paper states. [13] It noted that EU car companies are big employers in the U.S., providing jobs to about half a million people through direct employment and dealerships. [9] The automotive industry is a wide variety of companies and organizations involved in the design, manufacturing, development, marketing, and selling of motor vehicles, several of them are called automakers. [38] With Volkswagen’s Audi building SUVs in Mexico and BMW set to build its 3 Series sedan there next year, Trump would have to tax Mexico-built vehicles as well to keep the companies from using a workaround, she said. [36] Japanese companies employ another 130,000 or so U.S. auto workers. [11]

The U.S. leader promised to unleash tariffs on European car imports after the EU retaliated against his tariffs on steel and aluminium, sparking fears of a trade war that pushed stock markets around the world into the red on Monday. [13] The warning comes in the commission?s first detailed response to the U.S. department of commerce following Trump?s threat to hit imports of European cars with tariffs. [13]

According to the commission analysis, European carmakers in the U.S. produce 2.9m cars, about 26% of U.S. production, supporting 120,000 U.S. manufacturing jobs and 420,000 dealership jobs. [13] In a hard-hitting paper, the European commission said Trump?s tariffs would be “self-defeating and would weaken the U.S. economy”, estimating that almost $300bn (228bn) worth of U.S. goods could be hit by countermeasures. [13] “The European Union is possibly as bad as China, only smaller,” the U.S. president told Fox News on Sunday. [13]

The only automaker outside Germany offering European delivery is Volvo. [37] As for Value Added Tax (VAT), that double-digit-percentage levy on consumer goods in the European Union? Audi and Porsche collect it up front but refund it as long as the vehicle is returned when the contract specifies; Mercedes-Benz and Volvo say that the VAT will be charged only if the vehicle is kept in Europe past the period specified in the contract. [37]

EU vehicle imports to the U.S. are stable and “do not threaten or impair the health of the U.S. industry and economy,” the letter says, adding that the U.S. automobile industry is “healthy.” [34] China’s car market, however, is starting to slow, with first quarter growth coming in a 2.8%, according to the China Association of Automobile Manufacturers, which predicts only a 3% advance this year, notably slower than the 13.7% pace recorded in 2017. [35] Automobile 2018 Conference is an automotive engineering expo which is comprised of 17 scientific sessions and 100+ sub-sessions which have designed to offer comprehensive review and discussion on the current topics and issues of automotive engineering and auto industry. [38]

President Donald Trump’s threat that he could tax cars imported from Europe was premised on the idea that German automakers pour Benzes and Bimmers into the U.S. while making it “impossible” for American cars to sell there. [36] German auto makers have built a handful of plants in the South that now employ almost 120,000 Americans. [11]

“We’re going to put a 25 percent tax on every car that comes into the United States from the European Union,” Trump said at a campaign rally in West Virginia. [39] At the end of the Group of Seven summit, Trump renewed his threat to impose tariffs on cars imported into the United States by manufacturers accused of unfairly taking market share from American carmakers. [40] Trump has been vocal about the need for automakers to manufacture vehicles in the United States, and has said there are too many German cars on the roads. [41] European cars coming to the United States will be levied with additional taxes, according to U.S. President Donald Trump. [39]

Trump may not realize how many “European” cars are actually built in the U.S. and how these tariffs could hurt the U.S. in the long run. [42] The EU tariff rate on all U.S. car imports is 10% while the U.S. tariff on imported European cars is 2.5%. [41] Germany’s chancellor said Thursday she’s willing to back lower tariffs on U.S. auto imports as a potential European Union (EU) concession to the Trump administration – just one day after CEOs of Germany’s biggest carmakers reportedly voiced support for eliminating such tariffs entirely. [41]

Big trade imbalance!” The proposed tariff would be 2.5% on cars assembled in Europe and 25% on European-built vans and pickup trucks, a possible crushing blow to European car companies in the U.S. Many have criticized the president for glossing over the number of U.S. jobs created by foreign automakers. [42] WASHINGTON – The U.S. and European Union have reached a deal to ease trade tensions and avoid further tariffs, President Donald Trump and European Commission President Jean-Claude Juncker said Wednesday. [10] President Donald Trump speaks with Jean-Claude Juncker, President of the European Commission, during a joint statement about how the U.S. will work with the European Union to try and eliminate trade tariffs, in the Rose Garden of the White House on Wednesday. [10]

If President Trump’s plans go through, European cars will end up being significantly more expensive in the U.S. The European Union would likely meet these tariffs with resistance or even retaliation. [42] A report by Reuters details Trump’s plans to slow down European car sales in the U.S. by imposing trade tariffs. [42]

Among continents, European countries accounted for the highest dollar value worth of car exports during 2017 with shipments amounting to $405.4 billion or 54.8% of international car sales. [43]

German carmakers with big U.S. operations like BMW and Mercedes-Benz maker Daimler would be worse hit by proposed Chinese import tariffs than American auto firms, a study has found. [40] Tariffs on auto imports could hurt American jobs & raise consumer costs,” the Japanese manufacturer said. [40]

Car behemoth Volkswagen warned Thursday against “one-sided protectionism” after the United States said it was considering new taxes on auto imports in the name of national security. [40] Several months after Trump first imposed tariffs on steel and aluminum imports, the United States is now in economic skirmishes with China, Japan, the EU, Canada, Mexico and Turkey. [10] The United States incurred the highest deficit in the international trade of cars far ahead of second-place China. [43] Last year, Germany?s automotive trade association said, “the United States would be shooting itself in the foot by imposing tariffs or other trade barriers.” [42] “However, taxing it with trade tariffs is a threat to the economic security of millions of hardworking American families,” he wrote. [40] This decision–part of Trump’s “America First” efforts to redress trade imbalances–may be counterproductive because not only do most of the targeted manufacturers have factories in the U.S., but American carmakers are among the largest importers of vehicles from Canada and Mexico. [40] Smaller percentages of overall car exports came from Africa (1.2%), Latin American excluding Mexico but including the Caribbean (also 1.2%) and Oceania (0.1%) led by Australia. [43]

The United States also charges a 25 percent tariff on light truck and sport-utility vehicle imports from other countries. [10] In 2017, the United States imported 8.27 million vehicles valued at $192 billion and exported 1.98 million at a value of $57 billion, according to the Commerce Department. [40] The United States imported a record $192 billion in new passenger vehicles in 2017. [10]

The United States and China have a tentative deal to save embattled Chinese telecom company ZTE, days after the two nations announced a truce in their trade standoff, The Wall Street Journal reported Tuesday. [40] AABC originated in the United States and attracted a great deal of attention in the automobile industry during the fourth EV boom around 2010. [14]

In early February 2018 I covered the AABC (International Automobile Battery Conference) Europe 2018, an international conference for electric vehicle batteries held in Mainz, Germany to determine the automotive manufacturer?s true intentions. [14] President Donald Trump has been vocal about his “America First” policies, which involves potential tariffs on foreign goods such as automobiles. [42]

The chief executives of prominent German auto companies – including Daimler, BMW and Volkswagen – “liked” a Trump administration proposal for both sides to reduce those tariffs to zero, according to German business news outlet Handelsblatt. [41] Some outside advisers have privately urged Commerce officials to tailor any restrictions so that they only affect advanced technology used in cars and not the cars themselves, creating an opening for U.S. companies without inadvertently driving up broad costs on consumers. [10]

“A large part of their U.S. production is exported to third countries, including the European Union,” it said. [40] The European Union will also import more U.S. soybeans and liquified natural gas, or LNG, both leaders said. [10]

Trump first warned about possible tariffs on European cars in May. [39] European Commission President Jean-Claude Juncker is expected to meet with President Trump later this month to discuss trade concerns. [41]

Ahead of Wednesday’s announcement, several of President Trump’s senior economic advisers believed he was planning to push forward with 25 percent tariffs on close to $200 billion in foreign-made automobiles later this year, three people briefed on internal discussions said. [10] Germany, the biggest automobile producer of Europe opposes the French and British policies. [14]

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3. (45) What Higher U.S. Car Tariffs Could Mean for Europe

4. (19) 10 Reasons Why American Cars Are Better Than European Cars (And 10 They’re Not)

5. (13) Why Aren?t U.S. Cars Popular in Japan? – The Atlantic

6. (13) Trade war fears mount as Donald Trump threatens EU with higher automobile tariffs | News | DW | 23.06.2018

7. (12) European Car Manufacturers Send A Signal On Tariffs – Invesco DB Commodity Index Tracking ETF (NYSE:DBC) | Seeking Alpha

8. (11) EU says Trump car tariffs ‘will put a tax on the US people’ | Business | The Guardian

9. (11) Germany?s Largest Auto Makers Back Abolition of EU-U.S. Car Import Tariffs – WSJ

10. (11) Trump?s Car Tariffs and Transatlantic Reciprocity – The Globalist

11. (10) Trump, EU announce deal to avert escalation of trade tensions | INFORUM

12. (10) Trump threatens to tax European auto imports | Reuters

13. (10) Europe Pessimistic On U.S.-E.U. Auto Trade Talks, But Might Have Misread Trump

14. (10) Car-Tariff Threat From Trump Misses Mark in Germans-in-U.S. Era – Bloomberg

15. (10) EU Preparing to Strike Back if Trump Slaps Tariffs on Foreign Cars

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17. (9) Trump car tariffs could run European convertibles off U.S. roads | Reuters

18. (9) US tariffs on car imports are a double-edged sword

19. (8) https://jalopnik.com/trump-threatens-european-union-with-car-tariffs-which-1823490353

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22. (6) FACTBOX-Import tariffs: EU versus United States

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29. (4) Baton Rouge auto dealers react to Trump?s proposed foreign vehicle tariffs

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34. (3) https://automobile.conferenceseries.com/europe/

35. (3) Trump vows to slap every European car with 25% tariff, but gives no time frame — RT Business News

36. (3) Car Exports by Country

37. (2) Trump?s car tariffs for Europe could cost 100,000 US jobs

38. (2) Trump may have a point about EU tariffs, ifo says

39. (2) • European car brands – vehicle sales in the United States 2018 | Statistic

40. (2) Cars produced in the world – Worldometers

41. (2) EU: Trump’s Car Tariff Threats Are ‘Not Based on Facts’ | Fortune

42. (1) Car production breaks new records in 2017

43. (1) What Trump Doesn’t Understand about South Carolina and BMW